UPCOM:WTC

• Beneish M-Score -1.4259 (81st percentile vs VN peers): the overall score is above most Vietnamese peers; the peer percentile and the year-over-year change (-0.20) are relevant because the US -1.78 cutoff is not fully transferrable to Vietnam.
• DSRI (Days' Sales Receivable Index) = 3.2420: measures growth in receivables relative to sales; a value well above 1 suggests receivables are growing faster than sales and may signal revenue recognition or collectability concerns.
• Receivables outside the trade cycle = 31.4% of total assets (96th percentile): a very large share of assets classified as prepayments, loans receivable or other long-term receivables compared with Vietnamese peers.
• Receivables quality = 0.0/100 and Revenue quality = 0.0/100: these scores indicate weak evidence that reported revenues and receivables reflect cash-generating core operations.
• SGAI (Selling, General & Administrative Index) = 1.6147: SG&A growing faster than sales, which can pressure margins or reflect cost recognition timing.
• Altman Z-Score = 1.68 (distress zone): this score measures distance to bankruptcy-like distress using balance-sheet and income statement ratios; 1.68 is in the range typically associated with elevated financial distress risk.

• Accruals quality = 100.0/100: accrual measures (TATA = -0.0316) indicate accruals are not the primary source of earnings volatility and overall accrual quality looks strong.
• Cash conversion score = 100.0/100 but note the three-year operating cash flow / net profit measure (Vietnam check) is -0.48 (17th percentile): while the earnings-quality metric flags good short-term cash-accrual alignment, the three-year cash-conversion metric suggests profits have not consistently turned into cash over a longer horizon.
• AQI (Asset Quality Index) = 0.3506 and LVGI (Leverage index) = 1.3462: AQI below 1 typically indicates no big shift to capitalizing or reclassifying expenses into assets, while LVGI >1 shows some increase in leverage but not an extreme change.
• No accumulated losses and owner’s equity (excluding minority interest) positive: the statements show retained earnings are not negative and parent equity is positive.

Control is highly concentrated: Công ty TNHH Vận Tải Việt Thuận holds 82.6% of shares, with the next largest individual holders at 4.1%, 3.8% and smaller stakes. Director-deal disclosures (2025-10-30 to 2026-10-30) show registrations for 2 sales (1,120,409 shares) and 2 purchases (410,000 shares), net registered volume -4.06% of shares outstanding; these are registered intentions recorded with the exchange, not executed trades.

• Compare the year‑end breakdown of ‘Receivables and other long‑term receivables’ in the notes to the balance sheet with the revenue note to identify related-party, prepayment or loan components that make up the 31.4% of total assets.
• Reconcile the DSRI components: confirm the change in trade receivables and sales in the revenue recognition note and the ageing schedule to test whether receivables growth aligns with billings or represents unusual terms.
• Review the SG&A note and segment or expense schedules to see what drove SGAI = 1.6147 (is the increase from one-off items, recurring expense growth, or reclassification?).
• Check the cash-flow statement and any reconciliation of profit to cash from operations over the past three years to verify the three-year operating cash flow / net profit of -0.48 and explain the mismatch between high short-term cash/accrual scores and the multi-year cash conversion weakness.